Some Pool Corporation (NASDAQ:POOL) shareholders may be a little concerned to see that the Senior VP & CFO, Mark Joslin, recently sold a whopping US$1.1m worth of stock at a price of US$215 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.0%.
The Last 12 Months Of Insider Transactions At Pool
Over the last year, we can see that the biggest insider sale was by the Chairman & Lead Independent Director, John Stokely, for US$1.8m worth of shares, at about US$186 per share. That means that even when the share price was below the current price of US$204, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 45% of John Stokely's stake.
In total, Pool insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership of Pool
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Pool insiders own 3.3% of the company, worth about US$267m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Pool Insiders?
The stark truth for Pool is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Pool makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in Pool, you should check out this free report on analyst forecasts for the company.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.